In the run-up to the Bank of Japan’s policy meeting this week, some investors are speculating about a change in the central bank’s inflation target, a move that analysts told CNBC could steer the nation’s economic progress dangerously off track.
The two-day policy meeting concludes on Wednesday and most analysts agree that the bank is unlikely to expand its asset purchase program, with some pinpointing April for a move, and others looking further ahead to October.
According to U.K. headquartered research house Capital Economics, chatter over changes to the inflation target has been unwarranted. “There is some speculation that the board will lower its target from the current 2 percent or abandon the time horizon of ‘around two years,’ but this seems premature,” Capital Economics analysts said in a note previewing the likely outcome of this week’s meeting.
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